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considering that drivers in the taxi industry had an average competition base due to the hire-for services car providers, mainly in the corporate world. According to Wu (2017), corporate clients decided on luxury limousines, chartered services, and transit for healthcare items. However, the power of suppliers was high due to the high prices for maintenance and high costs of the medallions for the independent and corporate fleets.
On average, service providers in the taxi industry had significant protections which prevented them from experiencing intense competition from new entrants, substitutes, buyers, and competitors. Despite having licensure restrictions, the returns on investments on the medallions were high for the medallion owners.